Neighbors raise ethics concerns as they fight subdivision

Published: Tuesday, December 15, 2009 at 11:59 a.m.

Last Modified: Tuesday, December 15, 2009 at 11:59 a.m.

HOUMA — Terrebonne Parish officials are questioning whether ethical conflicts are involved with a residential-and-commercial subdivision planned for Gray that has sparked opposition from neighbors.

The latest argument from residents opposed to the planned Three Oaks development points to alleged connections among the current landowners, a parish-tapped selection committee and Coastal Phoenix, the Mississippi-based developers chosen to receive $10 million in federal tax dollars to build the 335 affordable-rental apartments and homes.

In response to the allegations, the Terrebonne Parish Council voted 7-1 Monday to ask the state Attorney General’s Office and state Ethics Administration to give opinions on whether the landowners, developers and selection committee members had conflicts of interest or violated state ethics law when the committee recommended

the development to local administrators.

“Sometimes it’s not about whether there’s a conflict; it’s about letting the public know if there’s not a conflict,” said Councilman Kevin Voisin, who asked for the opinions. And if a conflict is found, he added, everyone will be relieved to have caught it early on.

Councilwoman Arlanda Williams was not present Monday because she was attending a holiday reception at the White House. Councilman Johnny Pizzolatto was the sole vote against the opinion request and said he believes the committee’s members to be clear of any ethics violations. After the meeting, he said all of the council members should also be examined for conflicts. Asked if he was referring to particular council members, he said no.

A selection committee was formed by local government this summer to review Three Oaks and three other development proposals vying for the grant money.

On the committee were Parish Planning Director Pat Gordon; parish Housing and Human Services Director Darrel Waire; Troy Cloutier, regional president at MidSouth Bank; Mike Ferdinand, CEO of the Terrebonne Economic Development Authority; Paula Ringo of Catholic Social Services; and Morris Coats, an economics professor and a non-voting member of the TEDA board who did not serve with Richard.

Parish President Michel Claudet said he doubts there will be conflicts found with the committee, which was assembled by Waire.

But residents allege the committee has connections to the current landowners, Northpark. That company, which is planning to sell its land to Coastal Phoenix, not the parish, is owned by Henry Richard, a local businessman and a former TEDA board president, and Barry Blackwell, the parish water system’s general manager and a former parish manager, a position that answers directly to the parish president and who used to oversee Gordon and Waire.

Both Richard and Blackwell left their respective government posts in late 2007. Blackwell was not at Monday’s meeting and did not return a Courier phone call to his office Monday afternoon.

Richard, who did attend, said Coastal Phoenix developers approached him with their proposal to buy and develop the property. He said he markets his various land parcels across the country and over the Internet.

“I don’t think there’s a conflict at all,” Richard said when asked about his former involvement with TEDA, repeating the same statement when asked about Blackwell’s job as the water district’s top official and his former job as parish manager. “We’ll wait for the decision, same as everyone else.”

Councilman Joey Cehan said state ethics law may apply to Blackwell, however.

State ethics law “prohibits a former agency head, for the two-year period subsequent to the termination of his employment, from assisting a person for compensation in a transaction involving his former agency and from rendering any service on a contractual basis to or for his former agency,” according to a 2009 ethics opinion related to the former head of the Louisiana Lottery Corp.

Jennifer Goulas, of Sugar Cane Street, said she’s happy the council was receptive to her and others’ comments about possible conflicts of interest.

“There is a lot of money at stake here, and everybody knows everybody. It’s not right,” Goulas said during the Parish Council’s Community Development and Planning Committee meeting Monday night.

Earlier this summer, the council unanimously voted to give a conditional approval for Coastal Phoenix’s proposal to spend $10 million in federal hurricane-recovery money to build 335 affordable-rental units. The state mandated the parish set aside $10 million specifically to create low-to-moderate-income housing.

Three Oaks is planned on 144-acres off La. 24, just south of U.S. 90 between Evergreen Drive and Marietta Place. In addition to the multi-story affordable apartments, Three Oaks would have retail space, two hotels, a golf course and more than 200 lots for owner-occupied single-family homes.

Over the past few weeks, dozens of Three Oaks’s would-be neighbors have voiced concern that the subdivision will decrease their property values.

Staff Writer Naomi King can be reached at 857-2209 or naomi.king@houmatoday.com. Follow her on Twitter @HoumaGov.

<p>HOUMA — Terrebonne Parish officials are questioning whether ethical conflicts are involved with a residential-and-commercial subdivision planned for Gray that has sparked opposition from neighbors.</p><p>The latest argument from residents opposed to the planned Three Oaks development points to alleged connections among the current landowners, a parish-tapped selection committee and Coastal Phoenix, the Mississippi-based developers chosen to receive $10 million in federal tax dollars to build the 335 affordable-rental apartments and homes.</p><p>Upwards of 60 residents, mostly from Southern Estates subdivision, attended Monday's meeting.</p><p>In response to the allegations, the Terrebonne Parish Council voted 7-1 Monday to ask the state Attorney General's Office and state Ethics Administration to give opinions on whether the landowners, developers and selection committee members had conflicts of interest or violated state ethics law when the committee recommended </p><p>the development to local administrators. </p><p>“Sometimes it's not about whether there's a conflict; it's about letting the public know if there's not a conflict,” said Councilman Kevin Voisin, who asked for the opinions. And if a conflict is found, he added, everyone will be relieved to have caught it early on.</p><p>Councilwoman Arlanda Williams was not present Monday because she was attending a holiday reception at the White House. Councilman Johnny Pizzolatto was the sole vote against the opinion request and said he believes the committee's members to be clear of any ethics violations. After the meeting, he said all of the council members should also be examined for conflicts. Asked if he was referring to particular council members, he said no.</p><p>A selection committee was formed by local government this summer to review Three Oaks and three other development proposals vying for the grant money.</p><p>On the committee were Parish Planning Director Pat Gordon; parish Housing and Human Services Director Darrel Waire; Troy Cloutier, regional president at MidSouth Bank; Mike Ferdinand, CEO of the Terrebonne Economic Development Authority; Paula Ringo of Catholic Social Services; and Morris Coats, an economics professor and a non-voting member of the TEDA board who did not serve with Richard.</p><p>Parish President Michel Claudet said he doubts there will be conflicts found with the committee, which was assembled by Waire.</p><p>But residents allege the committee has connections to the current landowners, Northpark. That company, which is planning to sell its land to Coastal Phoenix, not the parish, is owned by Henry Richard, a local businessman and a former TEDA board president, and Barry Blackwell, the parish water system's general manager and a former parish manager, a position that answers directly to the parish president and who used to oversee Gordon and Waire.</p><p>Both Richard and Blackwell left their respective government posts in late 2007. Blackwell was not at Monday's meeting and did not return a Courier phone call to his office Monday afternoon.</p><p>Richard, who did attend, said Coastal Phoenix developers approached him with their proposal to buy and develop the property. He said he markets his various land parcels across the country and over the Internet.</p><p>“I don't think there's a conflict at all,” Richard said when asked about his former involvement with TEDA, repeating the same statement when asked about Blackwell's job as the water district's top official and his former job as parish manager. “We'll wait for the decision, same as everyone else.”</p><p>Councilman Joey Cehan said state ethics law may apply to Blackwell, however.</p><p>State ethics law “prohibits a former agency head, for the two-year period subsequent to the termination of his employment, from assisting a person for compensation in a transaction involving his former agency and from rendering any service on a contractual basis to or for his former agency,” according to a 2009 ethics opinion related to the former head of the Louisiana Lottery Corp.</p><p>Jennifer Goulas, of Sugar Cane Street, said she's happy the council was receptive to her and others' comments about possible conflicts of interest.</p><p>“There is a lot of money at stake here, and everybody knows everybody. It's not right,” Goulas said during the Parish Council's Community Development and Planning Committee meeting Monday night.</p><p>Earlier this summer, the council unanimously voted to give a conditional approval for Coastal Phoenix's proposal to spend $10 million in federal hurricane-recovery money to build 335 affordable-rental units. The state mandated the parish set aside $10 million specifically to create low-to-moderate-income housing.</p><p>Three Oaks is planned on 144-acres off La. 24, just south of U.S. 90 between Evergreen Drive and Marietta Place. In addition to the multi-story affordable apartments, Three Oaks would have retail space, two hotels, a golf course and more than 200 lots for owner-occupied single-family homes.</p><p>Over the past few weeks, dozens of Three Oaks's would-be neighbors have voiced concern that the subdivision will decrease their property values.</p><p>Staff Writer Naomi King can be reached at 857-2209 or naomi.king@houmatoday.com. Follow her on Twitter @HoumaGov.</p>